April 22, 2003
The White House
economic growth plan, which includes a number of tax cuts, would be
beneficial to Hispanic-owned businesses -- particularly small firms --
President Bush told a gathering of correspondents for business
publications, including Hispanic Business magazine.
"When you drop the individual tax rate, you affect the small-business
owner dramatically, because the small-business owner generally is not
incorporated and pays the individual income tax. It should be called the
Small Business Tax Cut. One of the wonderful success stories of America is
the fact that there are millions of Hispanic-owned businesses now, and the
individual rate cut represents capital into their coffers," President Bush
said during the April 22 meeting at the White House.
Congressional Democrats have criticized the fiscal year 2004 presidential
budget request for being light on funding for programs -- such as the 7(a)
and 8(a) -- and departments -- such as the Minority Business Development
Agency -- which have traditionally benefited Hispanic-owned small
The president said the criticism is misguided.
"If they want to help small businesses, cut the taxes for small businesses
and recognize that most small-business owners are sole proprietors and
limited partnerships, and they pay the individual tax rate and that's not
fair. Instead of [the Democrats] talking about more government programs,
why don't they trust the people with their own money? Instead of spending
that money, just let them keep it in the first place. It's the most
effective way to create capital in the small-business sector. The number
of Hispanic-owned businesses represent phenomenal growth, and the best way
to encourage and enhance that growth is through capital formation inside
the companies themselves."
President Bush was to meet with his Uruguayan counterpart, Jorge Batlle,
at the White House to discuss trade issues, including a proposal to
establish a bilateral trade agreement between the two countries.